Category Archives: Net Worth

Net Worth – August 2007 Update

I know I’m a bit early on this post, but I slept in this morning and it’s my only draft that was close enough to a complete post to use. So here we go.

Assets
House $299,000
RRSP $13,200
Old Work Pension $11,600
New Work Pension $2300
Wife’s RRSP $5500
Wife’s Investment Account $8400
High Interest Savings Account $2100

Debt
Mortgage $145,700
Line of Credit $0

Therefore my net worth now stands at: $196,400. Overall an increase of +$6,400 or 3.4% from my last check up.

There appears to be a bit of calming in the real estate market here. I’m hearing less stories of over bidding on houses, but the other thing I’m seeing is less listings in my area. So trying to gauge my house market value has been difficult. So this month I’m only increasing the value by $5,000 which is only based on one ‘sort of’ similar house that went for sale in the area.

The stock market slide has also impacted the accounts overall. They don’t look as bad as they should because the cash added to the accounts has been covering their losses overall so I’m at least breaking even on most of the investment accounts right now. I’ve taken most of the extra cash that we had in the old ING account and picked up some more EIT.UN. By the way I made the switch over to RBC’s high interest account, the thought of instant transfers was just too appealing. I guess this is the end for the traditional savings account. One last thing I did in the last while was prepare the mortgage to start accelerating it’s pay off.

So given the cooling in the local real estate market and the slide in the stock market I’m happy with my increase over last time. After all I’m still up by 145% from my net worth at the end of 2006.

Net Worth – June Update

How the time flies, it seems that I just did my last update. Anyway here we go.

Assets
House $294,400
RRSP $12,800
Old Work Pension $11,700
New Work Pension $1300
Wife’s RRSP $5500
Wife’s Investment Account $5000
ING Savings Account $6800

Debt
Mortgage $147,500
Line of Credit $0

Therefore my net worth now stands at: $190,000. Overall an increase of +$58,500 or 44.5% from my last check up.

Before anyone gets too excited I do need to remind you my house value has shot up a lot in the last four months which is driving these insane increases. I decided to use my home value as market value -8% to account for closing costs and fees if I cashed it out. That way I’ve got a set formula I use to determine my house value rather than just taking a conservative guess.

For those of you who may be doubting my local crazy house market I would like to point out that I know someone whom just sold their home for an over $100,000 profit after owing the house for just seven months and trust me when I say they just painted it, added some hardwood and put in a new furnace. That’s it, that all they did. Talk about lucky timing that they previously bought an investment condo at the same time as the house and can move into that.

The result of all this is I’m 2.3 times my net worth from Dec 2006, which is almost completely driven my house value. If you strip out the house, I’m only up $3200 or 8% from April’s net worth to now.

Overall the number looks good. I have to admit I’m curious to see how far this housing market will shoot up before crashing down. Could I end up living in a $500,000 house by the end of three years? If so it will be interesting, but in the mean time I’ll just enjoy the ride.

Net Worth – April 2007

Well it is time again for a net worth update. For those newer readers I do this every two months just to keep a pulse on how things are going.

Assets
House $240,000
RRSP $12,600
Old Work Pension $10,500
New Work Pension $800
Wife’s RRSP $5200
Wife’s Investment Account $5000
ING Savings Account $5800

Debt
Mortgage $148,400
Line of Credit $0

Therefore my net worth now stands at: $131,500. Overall an increase of +$46,050 or 54.5% from my last check up. Now I know this value looks huge, but keep in mind I did just get my over $7000 tax return and my house value has shot up a lot.

I should point out I determine my house value by looking at similar homes in the market place and account for improvements I make to the house. I’ve been keeping my estimates conservative to ensure they stay realistic. At the same time I’ve been realizing the market is picking up some serious steam lately. For example I recently saw a house very similar to mine with some extra improvements and an extra 100 square feet of space listed for $289,000. I just can’t realistically undervalue my home by more than $50,000 so the value had to come up a bit larger of a jump than normal to cover the gap. I’m acutely aware that by using a conservative market price for my house that if there is a market crash my net worth will drop like a stone. Yet after being through a market like this once before with my last house I know you can’t ignore it either.

Also please note that I’ll submitting a post to the second Canadian Tour of PF Blogs which is going to be hosted by the Money Diva on May 7th. If you have any requests for a topic I’m open to ideas (since I currently don’t have a clue what I’m going to write about).

Canadian Tour of Personal Finance Blogs